Financial Technology (“FinTech”) is a newly coined term that describes a global growing trend to adopt technology solutions and applications in the field of financial services and activities with a view to improving and developing the service delivery in order to benefit all stakeholders such as banks, investment companies, their corporate and retail customers, and the regulators.
What are key areas of FinTech applications?
The key areas of FinTech applications are financial services, which broadly include the banking and financial services sector, investment companies, insurance companies, and tax. Examples of FinTech use include electronic payment and fund transfer platforms, and trading applications.
What are the legislations governing FinTech applications?
With respect to the legislative framework, the bodies that establish the legislative framework for FinTech applications are the Central Bank of Kuwait for banks and Capital Markets Authority for investment and financial brokerage companies.
For banks, the Central Bank of Kuwait issued Resolution No. 44/430 of 2018 issuing instructions for the regulation of electronic payment of funds. This instruction constitutes a framework for banks to submit an integrated business case as per the Resolution requirements in order to obtain a license to carry on the business.
It is worth mentioning that the Capital Markets Authority has issued Module Nineteen “Financial Technology – FinTech” under its resolution No. 10 of 2023. This module governs FinTech applications and solutions.
How FinTech solutions are developed?
A bank may sponsor entrepreneur initiatives or establish an incubator for developing FinTech solutions, which it intends to use. Once the development is completed, the bank submits the solution together with the business case to the Central Bank of Kuwait to conduct testing thereon in the regulatory sandbox environment and then approve the same.
What is the added value to business entities from FinTech consulting?
- Keep pace with growing technology development in the FinTech area to attain competitive advantages.
- Increase the size of automated processes, and hence, minimize business risks.
What are the services offered by Baker Tilly Kuwait?
- Developing business case studies of FinTech solutions as per CBK requirements
- Providing supervision and regulation consulting related to FinTech solutions
- Information Technology Strategy
- Information Technology Governance
- Digital Transformation
- Big Data Management
- Cybersecurity Consulting
- Qualifying Business Entities for ISO 27001 Certification
- Qualifying Business Entities for ISO 22301 Certification
- Disaster Recovery Plan (DRP)
- Technology Project Management
- Cybersecurity Audit
- IT Internal Audit Service
- SWIFT CSCF Assessment
- IT Processes, Policies and Procedures